Financial Crime World

Botswana Completes National Anti-Money Laundering and Counter Financing of Terrorism Risk Assessment

Gaborone, Botswana - The government of Botswana has successfully completed a National Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) Risk Assessment, making it the eleventh country in Africa to do so. The assessment was conducted with the support of the World Bank, which provided technical assistance and guidance throughout the process.

Background

In 2012, the Financial Action Task Force (FATF) adopted an international obligation requiring all countries to undertake a National AML/CFT Risk Assessment. The goal is to identify the risks faced by each country and target resources effectively to mitigate them. Botswana was one of the countries that requested assistance from the World Bank’s Financial Integrity Unit to conduct the assessment.

Process

The recently completed process involved over 50 officials from approximately 20 collaborating ministries and agencies. Officials with AML/CFT expertise collected and analyzed large amounts of data, information, and statistics to identify and prioritize the main money laundering and terrorist financing risks faced by Botswana.

Identified Risks

The identified risks include:

  • Higher levels of criminality linked to wildlife poaching
  • Weak controls in the diamond sector
  • Auto theft
  • Financial crimes such as tax evasion and corruption
  • Weaknesses in national AML/CFT control systems, including legal frameworks and implementation effectiveness

Next Steps

Botswana’s Deputy Secretary for Economic and Finance Policy, Elaina Gonsalves, expressed appreciation for the World Bank’s assistance throughout the project and pledged to strengthen the country’s legal framework, which is its first line of defense against money laundering and terrorist financing.

The National AML/CFT Risk Assessment will help officials:

  • Strengthen country systems
  • Apply appropriate control measures to fight money laundering, terrorist financing, and related underlying criminal activities
  • Contribute to stronger economic development, shared prosperity, and reduce poverty by stemming illicit financial flows (IFFs)